§ Mr. DalyellTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make available the World Bank's staff appraisal reports for all projects covered by the electric power sector loan requested by Brazil.
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§ Mr. EggarThe proposed second power sector loan will not be for specific projects. The World Bank specifies that appraisal reports may be used by recipients only in the performance of their official duties; and their contents may not otherwise be disclosed without World Bank authorisation.
§ Mr. DalyellTo ask the Secretary of State for Foreign and Commonwealth Affairs what are the latest arrangements that the United Kingdom director has agreed to in relation to the indebtedness of Brazil and its ability to meet its obligations to the International Monetary Fund, the International Bank of Reconstruction and Development and the International Development Association.
§ Mr. EggarThe executive board of the IMF agreed a loan of $1.4 billion in July 1988; the executive board of the IBRD agreed a loan of $300 million for the agriculture sector in June 1988 (Brazil is not eligible for IDA lending). These loans are designed to support the economic reforms necessary if Brazil is to overcome its debt difficulties. Debt owed to the IMF and World Bank is only a small part of Brazil's debt.
§ Mr. DalyellTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment has been made of the human rights record of the Brazilian Government in relation to the Amerindians of Amazonia; and how Her Majesty's Government propose to vote in the light of such considerations on the World Bank structural adjustment loan for Brazil.
§ Mr. EggarThere has been widespread concern in the United Kingdom at the constitutional provision for Amerindian landholding. We watch this closely and are in touch with interested groups. The Brazilian authorities are well aware of our concern at reports of Amerindian deaths at the hands of gold panners and settlers. Our embassy in Brasilia is monitoring developments closely. We will take account of environmental and social considerations in forming a view of the proposed second power sector loan.
§ Mr. DalyellTo ask the Secretary of State for Foreign and Commonwealth Affairs (1) what were the projects for which loans were sought from the World Bank by Brazil during each of the last five years; what was the outcome; and how Her Majesty's Government instructed their representative on the World Bank executive board to vote;
(2) what was the value of the loans made by the World Bank for each of the last five years to Brazil.
§ Mr. EggarLoans brought to the World Bank's executive board and approved in the past five years are listed in the table. It is not the policy of Her Majesty's Government to disclose instructions to our executive director.
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World Bank loans to Brazil: 1984–88 Fiscal year ended 30 June Amount of loan $ million Purpose 1984 303 Agricultural credit. 65.2 Agricultural development in north west Brazil. 22.8 Agricultural development and Environment Project. 7.7 Irrigation development project in north east Brazil. 40 Basic education in north and central west Brazil.
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Fiscal year ended 30 June Amount of loan $ million Purpose 20 Technician training. 250.6 Power distribution systems in north east and north west Brazil, and in low income metropolitan areas of Rio de Janeiro and Sao Paulo. 222.8 Rural electrification. 57.5 Primary health care programme in Sao Paulo, strengthening health planning in federal government. 352 Expansion of small scale, export oriented manufacturing industries. 210 Highway rehabilitation and technical assistance. 52.7 Urban development in Parana. 1,604.3 1985 100 National Land Administration Programme. 122.7 Rural development in north east Brazil (2 loans). 72 Science and Technology education. 400 Electricity transmission. 312 Electricity distribution in highly industrialised areas. 300 Third development banking project for small-scale enterprises. 200 Financial rehabilitation of Federal Railway. 16.3 Water supply and sanitation in rural areas. 1,523 1986 500 Restructuring agricultural credit system. 155 Second agricultural extension project for small scale farmers. 92 North east rural development programme. 57 Irrigation project in north east Brazil. 48 Irrigation survey project in north east Brazil. 500 Power sector rehabilitation project. 59.5 Health project in north east Brazil. 29 Public sector management project. 100 Rehabilitation of flood damaged urban areas in the north east region. 55 Urban development in Salvador metropolitan region. 24.5 Urban development in state of Santa Catarina. 1,620 1987 612 7 loans for agricultural development in the states of Bahia, Ceara, Maranhao, Piau, Paraiba, Minas Gerais and Alagoas respectively. 51 Veterinary services. 50 Reduction of industrial pollution in Sao Paulo. 74.5 Strengthening the National Vocational Training System. 174 Highway rehabilitation in Sao Paulo. 100 Rehabilitation of Sao Paulo Railway Company. 200 Urban transport improvement in Brazil's nine largest cities. 1,261.5 1988 300 Agroindustry development. 300 Agriculture credit. 195 Infrastructure for irrigation development.
Fiscal year ended 30 June Amount of loan $ million Purpose 132 Mitigation of human cost of resettling families displaced by Itaparica reservoir. 48.5 Support for programme of planting of up to 165,000 hectares of forest and charcoal manufacturing infrastructure in Minas Gerais. 109 Health programme in north east Brazil, and help in developing an AIDS programme. 20 Technical assistance to improve efficiency of ports. 175 Reconstruction and rehabilitation following floods in Rio de Janeiro. 80 Water and sewerage to poor areas of urban centres. 1,359.5
§ Mr. DalyellTo ask the Secretary of State for Foreign and Commonwealth Affairs what steps are being taken through the World Bank and the International Monetary Fund to ensure that adequate funds are available to Brazil to undertake structural adjustment programmes.
§ Mr. EggarThe World Bank has lent substantial sums to support the process of structural adjustment in Brazil, and the International Monetary Fund has lent in support of stabilisation policies. An effective response by international financial institutions is dependent on the Brazilian Government promoting an adequate macro economic framework that will re-establish stability and permit the resumption of sustainable growth.
§ Mr. DalyellTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will discuss with the World Bank methods of ensuring that Brazil repays its international debt on reasonable terms.
§ Mr. EggarAs a member of the World Bank we participate in regular discussion of the World Bank 's lending programme in Brazil. These discussions cover Brazil's ability to meet its obligations to the World Bank. Paris Club creditors agreed last July to reschedule Brazil's official debt. Official creditors are agreed that Brazil's commercial debts are a matter for Brazil to negotiate with the banks themselves. We and the World Bank have both welcomed the elements of debt reduction in the innovative menu agreement reached between Brazil and the banks last year.